Optimizing focused spaces

I'm wondering what the optimal size for a partying area is in SL. Assuming avatars of standard size (You should have seen the giant robot that flew by yesterday! Bigger than most houses!)

I'd need enough space for everyone to stand around. And clustering space, people often like to go off in small groups. If the space is too large, people don't interact. You need activities, toys or a good host to provide interaction topics when people aren't the best at smalltalk. In real life, I'd add food and booze to the list - I could probably use "free gifts" as a replacement. Music helps.

Then there's the SL specific issues. Camera space, and whatever effects the distance of whispers and says have on such things. High ceilings are a must - most people don't use the "1st person" view, and the camera defaults to floating a bit above the avatar. Texture lag, and controlling view angles to reduce lag.